All VA Regional Offices and Centers Fast Letter: 12-09

2.

Director (00/21PF)

March 16, 2012

Director (00/21PF) In Reply Refer To: 21F1

All VA Regional Offices and Centers Fast Letter: 12-09

ATTN: All Veterans Service Center and Fiduciary Hub Personnel

SUBJ: Instructing Fiduciaries to Provide Copies of Accountings

Purpose

This fast letter establishes procedures for instructing a VA-appointed fiduciary, who meets the requirements for submission of an annual accounting to VA, to provide a copy of each VA-approved accounting to the beneficiary. This letter also provides a correspondence template for use in providing notice to fiduciaries regarding approved accountings.

Background

Under current procedures, certain fiduciaries must submit to VA an annual accounting on VA Form 21-4706b, Federal Fiduciary's Account, consisting of a written report of the fiduciary's management of the beneficiary's funds. These accountings include a beginning inventory, an itemization of income and expenses, and an inventory of funds remaining at the end of the accounting period. However, under current procedures, VA does not advise fiduciaries of their obligation to provide a copy of their VA-approved annual accounting to the beneficiary they serve.

It is VA policy to facilitate open communication between fiduciaries and beneficiaries.

It is also VA policy to protect the rights of beneficiaries who are in the fiduciary program. To support these policies, notice to a fiduciary regarding VA approval of the fiduciary's accounting must include a specific instruction to provide a copy of the approved accounting to the beneficiary.

Procedures

Effective immediately, fiduciary hubs and fiduciary activities within regional offices must prepare and send the enclosed letter (modified to include the information identified in red) to the fiduciary after auditing and approving the fiduciary's annual accounting. In addition to providing notice of VA approval, this letter instructs the fiduciary to provide a copy of the approved accounting to the beneficiary within 14 days of the date of the letter.

Questions

Submit questions regarding this letter to XXXXXXXXXXX .

/S/

David R. McLenachen

Director

Pension and Fiduciary Service

Enclosure